Some of the world’s most reputable brands are rapidly adapting to BTC’s new status as legal tender in El Salvador. Starbucks, McDonald’s and others are now accepting BTC in the country.
– BTC Magazine (@BitcoinMagazine) September 7, 2021
First steps with BTC as legal tender
El Salvador’s BTC reserves have more than doubled. On Tuesday, President Nayib Bukele told his 2.8 million followers on Twitter that Salvador had bought another 200 BTC.
“Salvador has just bought 200 new coins. We now hold 400 BTC “
Hours later, when the cryptocurrency dropped to a 30-day low of about $ 43,000, Bukele revealed that Salvador had made another purchase of BTC to bring the total land hold to 550 BTC.
The country is making history because it officially recognizes BTC as legal tender alongside the US dollar. Amid BTC’s formal adoption, Bukele called for patience because he said the process would take some time.
“Like all innovations, the BTC process in El Salvador has a curve of knowledge. Every journey into the future is like that and not everything can be achieved in a day or a month. However, we must break the paradigms of the past. Salvador has the right to move into a better world. “
Late last month, El Salvador’s Legislative Assembly approved a $ 150 million BTC trust. Among other things, it will facilitate the exchange of BTC for the US dollar. Part of the funds from the trust will also be used to set up ATMs and finance mass education on primary cryptocurrency.
The other side of the coin
This is a story about El Salvador that the BTC maximalists do not want to hear. Salvadorans living there claim that the new BTC law has already brought the worst of the president’s well-documented authoritarian tendencies.
“The government sent government agents and inspected businesses to make sure they were complying only because C-level executives said negative things about the law,” one local businessman said on condition of anonymity.
Last month, President Bukele insisted that BTC not be forced on anyone. But that’s not quite true. A short clause in the legislation itself shows that the adoption of BTC is – and will be – mandatory. Entrepreneurs who reject BTC transactions will be subject to sanctions.
The Economic Democracy Index of 2020 defined El Salvador as a “hybrid regime,” meaning that government is only one category above the direct authoritarian regime and far from full democracy.
Steve Hanke, a professor of applied economics at Johns Hopkins University, said: “Bukele may have gained considerable notoriety for his BTC plans, but this is only one step in a much broader plan, namely his rush to gain absolute power.”